Forensic Accounting + Forensic Auditing

tax-services

Overview of Forensic Accounting

Forensic accounting is the science of seeing behind the numbers to ferret-out fraud, financial misstatement, embezzlement and other acts hidden in, or missing from, the financial records of an organization. It is sometimes referred to as financial forensics or forensic auditing.

A recent report from a national forensic accounting association showed that the average company loses in excess of 5% of revenues to fraud each year. In companies with fewer than 100 employees are more likely to see asset misappropriation schemes in the following areas:

  • Cash Skimming
  • Employee Theft
  • Payroll Manipulation and Payroll “Padding”
  • Fraudulent Expense Reimbursement
  • Check Tampering
  • Vendor Invoice Payment Schemes

Our seasoned team of CPA’s, forensic accountants, legal professionals, and criminal investigators brings you over 30 years of hands-on forensic accounting experience to ensure the thorough investigation of every potential avenue. In addition, we combine the review of your internal control structure in every forensic examination to identify other areas of potential fraud. We help close the gate before the horse is gone.

Disputes can range from business-related litigation to marital dissolution. We handle both litigation support and investigative accounting.

Forensic Accounting Services

Every organization will face the need to explore whether they have been the victim of fraud or financial misconduct. Occasionally, you may need to explore whether fraud or misconduct has occurred, such as employee theft of property or inventory, misappropriation of funds by employees, kickbacks to employees from outside businesses, securities fraud, and insurance fraud.

Balog + Tamburri CPAs’ forensic accounting services provides the experience, knowledge and professionalism bring to provide a clear understanding of the current situation.

As part of any forensic accounting engagement, we:

  • Gain a complete understanding of the situation and provide potential courses of action
  • Work with you and your legal team in assistance with both the protection and recovery of assets
  • Work cooperatively with your legal team, private investigators, and others to ensure a successful and equitable outcome of any civil or criminal litigation

The CPA’s and Certified Forensic Accountants at Balog + Tamburri, CPA’s brings over 30 year of hands-on forensic accounting experience. We have a long history of providing a wide range of professional, confidential forensic accounting services to organizations just like yours. Consider the following questions:

  • Are you concerned that you or your business might be the victim of fraud, embezzlement or theft?
  • Are your financial indicators suggesting the need for a forensic examination of your financial information to uncover suspected fraud, abuse or financial misconduct?
  • Are you considering a potential acquisition and are concerned about the potential for fraudulent financial statements or financial irregularities?
  • Are you involved in litigation and require an expert witness to testify on your behalf?

If so, you need the support of a seasoned forensic accountant that has the training and experience to find the facts.

The seasoned forensic accountants of Balog + Tamburri, CPA’s can provide:

  • Employee Theft Investigations
  • Forensic Accounting – Loss Determination
  • Litigation Support
  • Creating the “Fraud Resistant Company”
  • Fraud Vulnerability Assessments
  • Expert witness testimony
  • Assistance in the preparation for all other financial aspects of settlement proceedings and trials.

Litigation Support

Balog + Tamburri CPAs’ forensic accounting services provides the experience, knowledge and professionalism bring to provide a clear understanding of the current situation.

As part of any forensic accounting engagement, we:

  • Gain a complete understanding of the situation and provide potential courses of action
  • Work with you and your legal team in assistance with both the protection and recovery of assets
  • Work cooperatively with your legal team, private investigators, and others to ensure a successful and equitable outcome of any civil or criminal litigation

The forensic accountants at Balog + Tamburri, CPA’s also assist your legal team in providing services related current or pending litigation.

We have the forensic accounting experience to:

  • Assist in discovery and in obtaining the appropriate documentation to support or refute a claim
  • Perform a forensic examination of the documentation provided to form an accurate assessment of the case
  • Quantify the damages factual relevancy of reports provided by the opposing expert
  • Assist with settlement discussions and negotiation

Our Forensic Accountants have the experience to assist in:

  • Marital Dissolutions
  • Company Valuations
  • Civil Litigation
  • Trust/Estate Probate Disputes
  • Assessment of loss of profit and earnings claims
  • Asset misappropriation
  • Economic loss recovery suits.

Here are the most common assignments and some sample engagements in forensic accounting

Business/Employee Fraud Investigations
The investigation of employee fraud often requires a determination of the extent of the fraud. It may or may not include the identification of a perpetrator.  Many times, such assignments necessitate interviews of staff who had access to the funds.

Matrimonial Disputes
Usually, when a dispute of this nature arises, forensic accountants must locate and evaluate the disputed assets, be they  businesses, property, or fiduciary.

Business Economic Losses
These kinds of engagements include contract disputes, construction claims, expropriations, product liability claims, trademark and patent infringements, and losses stemming from an alleged breach of a non-compete agreement.

Disputes Among Shareholders or Partners
The compensation and benefits given to each of the shareholders or partners is one of the more common issues in these cases.

Personal Injury Claims / Motor Vehicle Accidents
When economic losses from a personal injury or vehicular accident are in question, a forensic accountant is brought in.

Insurance Claims
Because insurance policies vary greatly in their terms and conditions,  such engagements require a thorough policy review to determine the appropriate method of figuring the loss. A forensic accountant can assist from either the insured or the insurer’s standpoint.

Creating the Fraud Resistant Organization®

Winston Churchill once said; “Civilizations that forget their past are doomed to repeat it.” A recently completed national study revealed that employees, customers and suppliers, steal over 5% of the average U.S.-Based company’s revenues. In these economic times, is it more critical than ever for senior corporate officers to embrace the concept of the “Fraud Resistant Organization®.”

While no organization or consultant can create a “Fraud-Proof” a company, the forensic accounting professionals at Balog + Tamburri, CPA’s can assist you build the right infrastructure that makes fraudulent acts extremely difficult

We also show you how to establish an “Early Warning System of Red Flags” for early detection. While you cannot prevent a creative embezzler from stealing form you once, you can keep it from happening twice! Remember, in the world of Forensic Accounting, we believe that “Pigs get fat, Hogs get slaughtered!”

By a combination of basic, consistent business planning, effective forecasting, a structured system of operational procedures, and diligent forensic accounting of the results, it is relatively easy to create a corporate culture and environment that significantly reduces the potential of a devastating loss. The objective is to make your accounting and operational systems a crook’s “Worst Nightmare!”

Give Us a Call
If you think you have reason to be concerned about financial misconduct, please call us today. We are happy to offer a free initial consultation to help you determine whether our services are needed.